Bankers & housing developers

Well it’s been a busy month for us so far and, not wishing to tempt fate, but long may it continue! Having commented that people seemed to be settling their accounts and not using the likes of us, we’ve now seen increased activity in the need for our support over the last few days! We’ve had clients both new and old wanting us to get stuck in on some unsavoury disputes they have!

I’ve also been involved with quite a bit of local private development work recently. We’ve worked on a few private projects of late with people having some fairly generous sized houses being built! A local developer we’ve worked with has also come back to us with another small project that he’d like us to get involved with. His feeling is that now is the cheapest time to build and if he can get a few projects off the ground now he will be set for 2011.

The issue he and many of us have is with the banks and their lending criteria. They are just not being helpful to our industry at all, however talking to a few bankers (yes I said bankers!) the government has changed the criteria for them too with regards to how they can lend money, so it’s not solely down to them. It’s still annoying though as we are just not building anywhere near the number of houses we need in this country!

I’m not going to comment much on the football this week. I still believe, like Mr Wenger, that we can do it, so keep the faith – for now!

Speaking of bankers, I came across this amusing article and video when I was looking for new news/RSS feeds to subscribe to. See what you think!

2 Responses to “Bankers & housing developers”

  1. 1 Philip Reece-Heal February 10, 2010 at 12:27 pm

    Your concerns about housing seem to concur with following article I found in Scottish constrution press this morning:

    It could take up to ten years for Scotland’s housing output to simply return to pre-credit crunch levels of around 25,000 units per annum let alone achieve the Scottish Government’s ambitions of reaching 35,000 by 2015, according to Homes for Scotland.

    The announcement came as it launched its manifesto ahead of this year’s general election, declaring that not since the end of the Second World War has the country faced a bigger housing crisis.

    Chief Executive, Jonathan Fair said: “Supply is touching all-time lows with some areas showing jaw-dropping drops in the number of private new homes being started (as high as 90% in both Edinburgh and the Borders, and 85% in Glasgow and Fife for example), exacerbating the significant housing shortfall which existed prior to the recession. Therefore, continued political focus on the importance of housing investment across all tenures is the order of the day.

    “Whilst there are now signs of stabilization beginning to appear in the market, the situation is such that the Scottish Government’s target of increasing the number of new homes built to 35,000 units per annum by 2015 could very likely take an extra decade to achieve.

    “Quiet optimism does exist but recovery depends on continued economic stability and mortgage availability throughout 2010. Ten per cent growth from a current very low base may be possible in a single year but industry hasn’t grown out of any prior recession at more than 3% per annum over longer periods.”

    Indeed, with home ownership remaining the tenure of choice for the vast majority of Scots, Fair pointed to the ongoing difficulties in the mortgage market as the main stumbling block to recovery, particularly as far as credit-worthy First Time Buyers are concerned. Whilst home builders are doing all they can to assist, this vital group (which the industry calls its lifeblood since every such sale results in a n estimated further six transactions up the ladder) continues to face significantly tightened lending criteria and reduced loan to value ratios.

    He added: “Clearly, home ownership should be viewed as a sustainable, long-term commitment by those looking to get onto and progress up the property ladder. However, we have relied too long on rhetoric about slowly increasing lending levels delivering tangible improvements in this area and need real substantive results now.”

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About Me

I’m now the Managing Director of Mynott Associates Limited my own specialist measurement business. I’ve been in the industry all of my life since I left school. My first job was with Bovis Construction as a management trainee where I trained to become a quantity surveyor. I’ve worked for contractors all through my career, I am FRICS, FCIOB and MCIHT qualified and act as an RICS assessor. I’m also a keen Arsenal supporter having followed them from a young boy

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